Solar shortfall coverage

HSB Solar Shortfall insurance is an example of HSB meeting new
risk needs with innovative coverage solutions for the renewable
energy market.

Investors who specialize in renewable energy technology products
assume great risks, one of which is whether or not the system will
perform to their projected expectations. To help alleviate some of
this risk from an investor's balance sheet and facilitate these
projects to operation, HSB offers Solar Shortfall coverage,
designed especially for solar photovoltaic risks.

Coverage

HSB Solar Shortfall insurance helps facilitate financing for
solar photovoltaic projects by transferring the risk of
technological underperformance off the balance sheet of the project
financier or investor. Solar Shortfall coverage enhances the credit
worthiness of the project in the eyes of the lender thus making it
feasible for them to offer more favorable financing terms. As a
result, the cost of Solar Shortfall coverage is offset by the
savings that the owner can realize in lower debt costs.

Coverage applies in the event of any of three occurrences:

Lower than normal solar radiation

Unintentional error in calculations of the projection

Defect or underperformance of the solar installation

Coverage triggered if actual annual output falls below a
specified retention level and then pays a percentage of the amount
short of projected yield.

Projections are based upon a standard design yield report and
acceptance test report as basis for output projection.

Shortfall does not arise from a Property or Equipment Breakdown
peril, these would be covered in the all-risk Operational Property
policy.